Biltrite Corp.

23519 Words Jul 22nd, 2012 95 Pages
Solutions for the Biltrite Bicycles Inc. Case

Module I - Assessment of Inherent Risk..............................................................3 Module II – PRELIMINARY ASSESSMENT OF CONTROL RISK BASED ON AN UNDERSTANDING OF THE DESIGN OF CONTROLS ................17 Module III - Control Testing: Sales Processing................................................29 Module IV - PPS Sampling: Factory Equipment Additions............................31 Module V - Accounts Receivable Aging Analysis..............................................35 Module VI - Sales and Purchases Cutoff Tests..................................................42 Module VII - Search for Unrecorded Liabilities...............................................47 Module
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The completed working papers are also included in the accompanying instructor's resource CD (IRCD) for those preferring to use the computer for viewing the completed audit working papers. The solutions on the IRCD may be activated as follows: a. b. c. Activate Excel or compatible spreadsheet program. Insert the IRCD containing the Biltrite Solutions in your CD drive. Retrieve the completed working papers using the same titles as contained in the data files students download from the book’s web site.

In addition to the completed working papers, the IRCD and this Biltrite solutions manual include a complete set of audit adjustments and reclassifications that the student will need to complete Module XIV. After the class has completed and submitted Modules I through XIII, the instructor may wish to present the students with a copy of the suggested entries as a set of check figures before proceeding to Module XIV. Before the students begin Module XIV, print out the AJE file (audit adjustments and reclassifications) and make a sufficient number of copies for the class. The Biltrite modules should be completed by the students according to the following schedule: MODULE NUMBER I II III, IV, and V VI and VII VIII, IX, and X XI IV, XII, and XIII XIV XV FOLLOWING CHAPTER 4 6 10* 11 12 13 14* 15 16

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